A medical data science technique could help solve a complex bond automation problem should ESMA ban the use of requests for quotes in fixed-income markets. By Vuk Magdelinic, CEO of Overbond

COP27 could not come at a more urgent time with carbon emissions at their highest ever in 2021. This is despite warnings from the United Nations’ Intergovernmental Panel on Climate Change that global emissions must be halved by 2030 to limit the rise in Earth’s temperature to 1.5 degrees Celsius. So what is going wrong?

Quantum computers could pose an existential threat to the heavily used encryption solutions that underpin the internet, including activities such as online financial services, which could see bank accounts drained in a flash.

Central banks report good progress on developing climate stress testing but critics point to weaknesses, including difficulties in modelling for catastrophic shocks to financial stability.

Financial regulators in Europe are buttressing banks to contain strains in the energy market and to stop them morphing into a full-blown financial crisis.

The battle between hackers and banks is very unequal, with the former often able to perform their attacks anonymously at little cost. For banks, much is at stake from reputation to profitability and they are having to marshal increasingly sophisticated tools to defend their moats.

Alarm bells are ringing in the upper echelons of the EU that the bloc’s financial system is on a shaky footing, thanks to the energy shock, the war in Ukraine, inflation and rising interest rates.

Severe volatility in the UK’s government bond (gilts) market triggered by the unravelling of a pension fund investment strategy is a clear warning sign of other dangers lurking in a leveraged financial system.